Whether you’re 16 and just entering the workforce or 66 and can start collecting Social Security, retirement should always be on your mind. Unfortunately, many people don’t seriously consider it until later in life. Here are four quick questions you should ask yourself now because retirement is coming later.
When should I retire?
Just because you could start Social Security at 62, doesn’t mean you should retire then. Most people do so between the ages of 61 and 69, but if you apply for benefits before you’re 67 — if you were born after 1960 — you’ll receive a reduced amount. On the other hand, if you delay beyond your full retirement age, you’ll collect more. Circumstances could change as you approach this stage in life, but having a specific age in mind allows you to set appropriate goals.
Where am I going to live?
Believe it or not, where you choose to settle can affect your retirement plan. Cost of living varies from city to city, and you may not want a big yard or need as much space. Some people stay close to family members while others take up residence in a retirement community. Make a note of places where you’d consider living. Go on vacation there to see how you like them. Make sure to visit in both the summer and the winter to see if the seasonal extremes suit you.
How can I save enough?
Many employers offer a 401(k) plan and some will even match your contribution, allowing for more accumulation. But you don’t need to depend on your job to help you save; you can invest in an individual retirement account, or IRA. America First offers traditional and Roth IRAs, as well as financial counseling to help you maximize your earnings.
How much should I save for retirement?
While the precise amount will depend on your situation, most experts recommend saving 10 to 15% of your income, starting in your 20s. You should also assess your living expenses and the type of lifestyle you desire when you retire. You can also use our simple & free retirement calculators to get more concrete numbers regarding the level of savings you’ll need to live comfortably.